The industrial use of silver is likely to rise 36 per cent in five years due to massive growth in the areas of application.
The latest report by the Washington-based non-profit international industry association Silver Institute indicates that industrial consumption of silver should rise sharply over the next five years to 666 million troy ounces (Moz) by 2015, representing 60 per cent of the total fabrication demand that year — a 36 per cent increase over 2010’s figure of 487 Moz.
The report, “The Future of Silver Industrial Demand,” was produced by precious metals consultancy, GFMS Ltd, on behalf of the Silver Institute. The report further said the sector’s growth opportunities are likely to emerge enormously during the period under consideration. The report underscores silver’s unique characteristics that make it the metal of choice for a wide range of established industrial uses, particularly in electronics and thermal applications.
Many new uses that rely on silver’s anti-bacterial qualities are set to emerge in the next five years, wherein the incorporation of silver would make the difference between products. These uses, which range from food packaging to radio frequency identification tags to autocatalysts, taken together could exceed 40 Moz of industrial demand by 2015.
Stronger industrial demand in the US and Asia will be a key factor in driving growth in the global total through 2015, and a healthy developing country demand, especially in markets such as China and India, will also be an important factor.
Much of the forecast growth will come from established applications, such as silver’s use in electrical contacts and in the photo-voltaic market, the report said.
The technical proficiency of silver limits the ability to switch in favour of lower-cost alternatives, making the metal largely price inelastic.
“The report demonstrates how buoyant silver’s industrial demand is, not only because of the lack of substitution, but also because of the wide range of established and growing new uses that make up industrial demand,” said Michael DiRienzo, executive director of the Silver Institute. “This report maintains that we expect to see robust gains in industrial silver demand over the next five years, further emphasising silver’s essential role in industry,” DiRienzo added.
